Treasury Proposes Exemption For Forex Swaps, Forwards

Law360, New York (April 29, 2011, 5:37 PM EDT) -- The U.S. Department of the Treasury on Friday proposed a plan to exempt foreign exchange swaps and forwards from new rules governing derivatives, echoing claims by banks and business groups that the regulations would do more harm than good.

The DOT suggests excusing the swaps and forwards from central clearing and exchange requirements under the Dodd-Frank Wall Street Reform and Consumer Protection Act, saying the foreign exchange market already has procedures in place to mitigate risk and ensure stability.